QANTAS spilt $2.8 billion worth of red ink as the flying kangaroo again had its wings clipped in a horror financial year loss.

The national carrier is bleeding cash on its international routes and its ambitious Jetstar investments in Asia.

But steely chief executive Alan Joyce yesterday maintained his plan to turn around the airline by sacking 5000 staff was working.

“We believe the worst is over for us now,” he said.

“The management, the CEO, the board are fully behind that ... and we are making progress in that direction.

“We really want to see Qantas survive for at least the next 90 years.”

He said the airline would make a profit in the next six months as $2 billion of cost savings paid dividends.

And he rejected union calls for his sacking.

“There’s always people out there asking for my head,” Mr Joyce said.

The airline’s loss announced yesterday was almost as much as its $3.09 billion stock market valuation.

But questions have been raised about whether Qantas’ international arm will still call Australia home as Mr Joyce announced it would separate the business into a new holding company.

Mr Joyce insisted yesterday that no deals were immediately planned but said that the change would allow “optionality” into the future.

Qantas’s operating loss of $646 million was better than forecast, with a $2.6 billion write down of the value of its aircraft soaking up most of the disturbing financial result along with higher fuel costs.

The 2014 losses were in stark contrast to the airline’s heady days of 2008 when it posted a $970 million profit just months before the Global Financial Crisis hit.

The 10 million member Qantas Frequent Flyer program, which generated a $286 million profit, will remain in house and unchanged.

The airline has already sacked 2500 workers as part of its plan to reduce its workforce by 5000.

But Mr Joyce said there would be no additional job losses to those previously announced.